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Vehicle Insurance or otherwise known as auto insurance, car insurance or motor car insurance is a type of insurance purchased from the insurance companies for the trucks, cars and other motor vehicles. As a matter of public policy, the said insurance is intended for the protection against losses and liabilities incurred as a result of traffic accidents. In various places, it is compulsory for all motor vehicle drivers to secure motor car insurance prior to its use in public places and public roads. In most states, motor car insurance covering liabilities for injuries and damage to property is compulsory although enforcement of such requirement may vary from state to state. Penalties for not purchasing such insurance may likewise vary from state to state. Oftentimes, failure of such purchase may result to substantial fine, suspension or revocation of license and/or registration and the possible imprisonment.

Motor car insurance covers the insured party, the insured vehicle, the third parties which may pertain to the car and the people, fire and theft, as well as the No Fault Auto Insurance in some jurisdictions. Different policies indicate the various circumstances covered. It would be advisable that you examine the insurance policy first before purchasing so that you would know whether the said policy covers the conditions you desire.

Depending on the jurisdiction, motor car insurance rates can either be government-mandated or determined by the insurance company itself depending on the regulations set by the government. The consumers in various places are protected with different coverage types which vary depending on what coverage an individual purchases. For some states, they are requiring motorists to carry liability insurance coverage so as to ensure that the drivers will be able to cover the cost of the damage incurred to the people or property in the event accident happens. With regard to other jurisdictions, they have more flexible “proof of financial responsibility” requirements. Liability insurance covers claims against the policy holders or the insured as well as the operators of the insured vehicles. The said insurance does not protect the policy holders if they operate any vehicles other than their own.